As the Obama Economy has reached its maximum output, and that output has fallen short of what is needed to sustain growth, lower unemployment and instill real consumer confidence, our Federal Reserve has turned to our own national reserves and additionally begun to print monies to bail out the failed economic efforts of the Obama Administration. By comparison, as Goldman Sachs, Fannie Mae, Freddie Mac and AIG needed the hundreds of billions of dollars along with the other hand-picked, exclusive recipients of the TARP funds; we can now add the Obama Administration itself to the list, only it won't be paying the taxpayer back. Ben Bernanke just has made the biggest politically charged gamble ever by any of his 13 predecessor Fed Chairs that is poised to exceed the maximum $850 billion of the TARP in just 19 short months at $40 billion a month in bailout. However, Bernanke didn't wait the short 49 days for the certainty of the results of a neck and neck Presidential General Election, where a referendum on the economy is the key issue. Instead, he has delivered what can only be construed as a Golden Calf to Barack Obama. The immediate improvements to the consumer and investor bottom lines come at a time when they are desperately needed, which only adds political fuel to the election fire, as this artificial, cosmetic and temporary lift props up the tattered remains of a lost hope and pocketed change '08 Obama campaign strategy.
In lieu of its self-serving and opportunistic timing, Chairman Bernanke's sole decision to preempt and sway the 2012 Presidential Election by prematurely instituting an indefinite third round of quantitative easing to an economy that previously wasn't fixed by the first two rounds, does not come without its costs. While it may directly benefit his boss, Barack Obama just prior to his possible re-election, and as such, intentionally save his own seat and job as Chairman of the Federal Reserve, the American Taxpayer is left footing the bill. The bill being the immediate $40 billion a month compounded with recovering from the certain long term inflationary costs this type of extreme easing has proven to bring.
Like an aged alcoholic with a pickled liver having another last drink at the Bar of Last Resorts would tell you-enjoy it while it lasts.

6:33 pm September 14, 2012

sw boles wrote :

And what banks are giving out these loans to underwater mortgage holders or for that matter anyone else who does not have AAA credit?

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